Fuel maker signs MoU with Air India for supply of sustainable aviation fuel
DSIJ Intelligence-1 / 20 Aug 2025/ Categories: Mindshare, Trending
The stock is up by 28.85 per cent from its 52-week low of Rs 110.75 per share.
Indian Oil Corporation Limited and Air India have signed a Memorandum of Understanding (MoU) for the supply of Sustainable Aviation Fuel (SAF), a significant move towards a greener future for Indian aviation. This collaboration highlights both companies' dedication to adopting low-carbon fuels in aviation, supporting global decarbonization goals, and facilitating a transition to more sustainable air transport operations. The MoU was signed in Gurugram by Shri Shailesh Dhar, Executive Director (Aviation), IndianOil, and Shri P. Balaji, Group Head — Governance, Regulatory, Compliance (GRC) and Corporate Affairs, Air India, with top leadership from both organisations present.
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This partnership underscores IndianOil's pioneering role in India's energy transition. The company recently achieved a major milestone by becoming the first Indian company to receive ISCC CORSIA certification for SAF production at its Panipat Refinery. This certification, granted under ICAO's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), confirms IndianOil's ability to produce SAF that adheres to the strictest international sustainability and lifecycle carbon emission standards.
By integrating certified green fuels into commercial operations, IndianOil and Air India are strengthening India's leadership in sustainable aviation and energy transition. Through this MoU, the two entities aim to work together on SAF supply to not only meet CORSIA targets for international flights but potentially exceed them, ensuring a dependable, transparent, and sustainable fuel supply that supports their shared environmental objectives.
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About the Company
Indian Oil Corporation Ltd is a Maharatna Company controlled by the Government of India that has business interests straddling the entire hydrocarbon value chain - from Refining, Pipeline transportation and marketing of Petroleum products to R&D, exploration & production, marketing of natural gas and petrochemicals. It has a leadership position in the oil refining & petroleum marketing sector of India.
The company has a market cap of Rs 2 lakh crore. The shares of the company have a PE of 25x, an ROE of 13 per cent and an ROCE of 6 per cent. The stock is up by 28.85 per cent from its 52-week low of Rs 110.75 per share.
Disclaimer: The article is for informational purposes only and not investment advice.